Tesla shares crash 14%, Alphabet falls 6% as AI spending worries hit Wall Street

Tesla shares fell 14 percent after its Q2 adjusted EPS of 33 cents missed the Zacks consensus estimate of 50 cents by 34 percent, despite revenue rising 25.5 percent year-on-year to 28.24 billion dollars and record deliveries of 480,126 vehicles. Operating income dropped 57 percent to 398 million dollars as operating expenses surged 47 percent on heavy AI, Cybercab, Optimus and Tesla Semi spending. Alphabet shares declined over 6 percent even after reporting 24 percent revenue growth and Google Cloud revenue rising 82 percent, as investors reacted negatively to its raised 2026 capex guidance of 195-205 billion dollars, up from 180-190 billion dollars earlier.